A

An in rem action is a legal term that designates an action against a thing (rem), as opposed to an action against a person. Black's Law Dictionary defines an in rem proceeding as an action “in which the essential purpose is to determine title to or affect the interests in specific property … a proceeding taken directly against property, and has for its object the disposition of property.”

You did not say what your client's business is, but an in rem action is used often in ocean marine business. If a ship's employee is injured aboard a vessel, that employee can file a lawsuit against the vessel. Under federal law, an employee injured through the negligence of the vessel (for example, the stairways on board the vessel are not properly maintained and the employee falls through the stairs) can bring an action against the vessel, and, if successful, attain an interest in the vessel. If the owner of the vessel cannot pay the amount won by the injured employee, the vessel can be sold, with the proceeds being used to pay the employee; the employee, in effect, becomes a creditor of the vessel owner.